DesktopTwo is a free web based desktop that offers a 1 gig of storage space along with the following features:

Web IM, including chat with Jabber, Google and MSN buddies. (No Yahoo! or AIM yet, that?s a shame.)
1 GB of free storage.
An inline MP3 player with playlist creation.
An adress book.
WYSIWYG web page editing.
A blog publishing platform with support for tags, full or partial RSS feeds, 16 layout templates and the ability to edit the CSS.
Email and search.

Via Techcrunch